Financial Institution GST/HST and QST Annual Information Return
Financial institutions generally provide GST- and QST-exempt financial services, which means they cannot recover most of the GST and QST paid on their inputs. However, some financial institutions also provide taxable services. As a result, they are subject to a range of unique rules and need to do various calculations in order to complete their GST and QST return. The Financial Institution GST/HST and QST Annual Information Return (form FP-2111-V) makes it possible to analyze the calculations, the results of which are entered on the GST and QST return.
The annual information return collects additional data from financial institutions, such as:
- the type of institution
- major business activities
- particulars of supplies and purchases for a fiscal year
- input tax credits (ITCs) and input tax refunds (ITRs) claimed
A person that is a financial institution is required to complete the annual information return if the person is a GST and QST registrant whose total annual revenue is more than $1 million. A person is a financial institution if:
- the person is a traditional financial institution (for example, a business offering its services to the public as a trustee, an investment broker, a credit union, an insurer, a person whose principal activity is the lending of money, or an investment plan);
- the person's financial revenue in its preceding fiscal year exceeded both $10 million and 10% of its total revenues (other than from sales of capital property); or
- the person's total income from interest and separate charges related to credit cards issued by the person, or to loans granted by the person, was, for income tax purposes, more than $1 million in its preceding fiscal year.
The information return must be filed within six months after the end of the fiscal year.
Do not use form FP-2111-V if the reporting institution is a selected listed financial institution for the purposes of the application of the GST/HST or QST. Instead, use form RC7219, GST/HST and QST Annual Information Return for Selected Listed Financial Institutions, which is available on the Government of Canada website.